German banking-as-a-service provider Solaris is reportedly seeking an urgent financial infusion of £100 million and may consider selling the company if it is unable to secure the necessary funds.
These developments come during a challenging period for the Berlin-based platform, which has recently divested its Engage business in the UK to Suits Me and announced plans to reduce its workforce by approximately one-third, affecting around 240 of its 700 employees.
This latest call for funding follows closely on the heels of a successful Series F funding round, in which Solaris secured €96 million just eight months ago. At that time, the firm also obtained a financial guarantee valued at up to €100 million, which was intended to support a significant contract with motor association Adac. Despite these efforts, Solaris faced a €56 million loss for the fiscal year 2022.
The current financial difficulties stem from delays in recognizing sales revenue from the Adac contract, coupled with substantial write-offs related to its UK electronic money institution (EMI) operations.
German publication Finance Forward has indicated that a new funding round, expected to raise between €100 million and $150 million, is likely to be finalized in the near future. However, should this funding effort falter, Solaris is also contemplating a potential sale of the company.
Valued at around €1.6 billion, Solaris has attracted interest from potential buyers, including Japanese conglomerate SBI and the French banking giant BNP Paribas.